Physical Stock Verification
Physical stock verification — also called a stock-take or physical count — is the process of physically counting every item in your godowns and reconciling those counts against Udyot ERP’s book quantities. When discrepancies appear, Udyot posts the adjustment automatically so your inventory records and accounting ledgers stay in perfect agreement. For Nepal-based businesses, an annual count before closing the Bikram Sambat fiscal year is strongly recommended and often expected during IRD audits.
When to run a physical stock verification in Udyot ERP
- Year-end (mandatory for most businesses): count before closing the fiscal year so your closing stock figure for VAT and income-tax filings is accurate.
- Monthly or quarterly: high-volume traders and manufacturers benefit from more frequent counts to catch shrinkage early.
- After a discrepancy: if your Stock Summary or Stock Ledger shows a number that doesn’t feel right, a physical count is the fastest way to find the root cause.
- Before or after an audit: IRD and statutory auditors may ask for a physical stock certificate; having a dated Physical Stock voucher in Udyot provides that evidence.
Before you begin
Make sure the following are in order before starting your count:
- The correct fiscal year pill is selected in the top-right header. Udyot dates the Physical Stock voucher to your active fiscal year.
- All pending purchase receipts, delivery notes, and stock transfers for the day are already saved. Posting new movements while a count is in progress will create inconsistencies.
- You know which godown (warehouse or store location) you are counting. Udyot tracks stock per godown, so a separate Physical Stock entry is needed for each location you want to verify.
- You have the stock items and godowns already set up in the system.
How to record a physical stock verification in Udyot ERP
- Go to Vouchers → Physical Stock → New.
- Set the Date (BS) to the date your team completed the count. Udyot uses Bikram Sambat dates — for example, enter 2081-12-25 for the last day of Falgun 2081.
- Choose the godown you are verifying from the dropdown. Only one godown per voucher — if you have multiple locations, create a separate voucher for each.
- Udyot populates the item list with every stock item that has a balance in that godown. The System Qty column shows the current book quantity for each item.
- In the Counted Qty column, enter the actual physical count your team recorded for each item. Udyot immediately shows the Difference (counted minus system) next to each row — a positive number means a surplus, a negative number means a shortage.
- Review all differences before saving. For large discrepancies, investigate first: check whether any delivery notes, receipt notes, or stock journal entries from the same day are still pending. If the difference is genuine (damage, theft, or data-entry error), note the reason internally.
- When you are satisfied, click Save.
Udyot immediately posts a Stock Ledger Entry for every item where the counted quantity differs from the system quantity. The book balance updates to match your physical count.
What Udyot posts to your books
If you have Integrate Accounts with Inventory turned on (recommended — see Perpetual Inventory and COGS), Udyot also posts a journal entry automatically:
| Scenario | Debit | Credit |
|---|---|---|
| Surplus (counted > system) | Stock-in-Hand | Stock Adjustment |
| Shortage (counted < system) | Stock Adjustment | Stock-in-Hand |
The Stock Adjustment ledger sits under Indirect Expenses in your Chart of Accounts. Surpluses reduce the expense (a gain); shortages increase it (a loss). This keeps your Profit & Loss statement clean and makes it easy to see total inventory variances for the period at a glance.
Editing a saved Physical Stock voucher
If you need to correct a count after saving, open the voucher and click Edit. Change the counted quantity and save again. Udyot automatically reverses the original Stock Ledger Entry and posts a new one reflecting the corrected count — you do not need to manually undo anything.
Integrity protection: Udyot will not let you save a Physical Stock entry with a negative counted quantity. Once that stock has been consumed by subsequent sales or deliveries, you also cannot edit or delete the entry in a way that would produce a negative running balance in the stock ledger.
Checking results after the count
After saving, check Inventory → Stock Summary — the closing quantity for each verified item should now match your physical count. To drill into the detail, open Inventory → Reports → Stock Ledger, filter by the item, and you will see the Physical Stock voucher in the chronological list. For a full picture across all items, see Inventory Reports.
Nepal-specific note
At fiscal year-end (31 Ashadh in BS), most businesses must submit a closing stock statement with their VAT return and income-tax computation. The Physical Stock voucher in Udyot creates a timestamped, auditable record you can present to auditors or use when generating your VAT returns and IRD annexes. For businesses above the VAT audit threshold (annual turnover above NPR 50 Lakh for most sectors), a dated physical count record is especially important.
Common questions
Can I add items that are not already in the godown?
Only items with an existing balance in the selected godown appear. If an item is physically present but shows zero, check whether it was received into a different godown, or post a Stock Journal to bring it in first.
What if I need to count multiple godowns?
Create a separate Physical Stock voucher for each godown — one for your Main store, another for Secondary, and so on.
My Stock Summary total and my Trial Balance Stock-in-Hand balance do not match.
This usually means Integrate Accounts with Inventory was off at some point. Confirm the toggle is on in Settings → Account Settings. Any gap from vouchers posted while it was off needs a manual reconciliation journal to close — see Perpetual Inventory and COGS.